Taco Cabana facts for kids

Taco Cabana is an American restaurant chain that serves Tex-Mex food. It is known for its bright pink buildings and outdoor eating areas. Many dishes are made fresh every day right in the restaurant. You can even see them being prepared! Taco Cabana is part of YTC Enterprises LLC and has its main office in San Antonio, Texas.

History of Taco Cabana

How the Restaurant Started

Taco Cabana was started by Felix Stehling in September 1978. The very first restaurant opened in San Antonio, Texas. Felix bought an old Dairy Queen building. He wanted more parking for his bar across the street.

Then, he decided to open a taco stand instead. The building's open design led to the "patio cafe" idea. This became a key feature of all Taco Cabana restaurants. Felix's wife, Billie Jo Stehling, designed the look and feel of the restaurants.

After the first night, all the outdoor furniture was stolen! So, Felix decided to keep the restaurant open 24 hours a day. This way, someone would always be there.

The restaurant focused on making fresh food. They did not use pre-made or pre-packaged items. As the business grew, Felix asked his two brothers to help. They expanded the chain to nine restaurants in San Antonio. In 1986, his brothers left the company.

In 1990, Taco Cabana began to grow outside of Texas. Richard Cervera became the company president that year. He made a plan to let other people open Taco Cabana restaurants as franchises.

Legal Battles and Growth

In the late 1980s and early 1990s, Taco Cabana's success led to other restaurants trying to copy its style. One of these was a chain called Two Pesos.

In January 1987, Taco Cabana sued Two Pesos. They said Two Pesos copied their restaurant style. Two Pesos lost the case. They tried to appeal, but in 1992, the Supreme Court agreed with Taco Cabana. Taco Cabana was awarded $3.7 million.

In 1992, Taco Cabana offered its stock to the public for the first time. By the end of that year, they had 17 restaurants. In 1993, Taco Cabana bought Two Pesos' restaurants. They turned most of them into Taco Cabana locations.

Taco Cabana's sales reached $127 million in 1994. Felix Stehling stepped down as chairman that year. Richard Cervera took his place. Even with higher sales, Taco Cabana's stock prices dropped. Cervera resigned in 1995. Stephen Clark became the new leader.

Changes and New Owners

In 1995, Stephen Clark became the chief operating officer and president. He looked closely at how Taco Cabana was run. He closed some company-owned restaurants. He also slowed down how fast they were opening new places.

In 1996, Taco Cabana introduced a new restaurant design in the Dallas-Fort Worth area. It looked like an old Mexican cafe. It had a rounded front, clay tile roofs, and aged wood. This new look helped bring in more customers and increase profits.

By 2000, Taco Cabana had spent about $30 million on its brand image. Profits grew, but the stock price stayed low. In 2001, Carrols Restaurant Group bought Taco Cabana. It became a private company. After this, Stephen Clark left. Mike Biviano took over.

In 2001, Taco Cabana started offering a "Mexican grill" concept. This included grilled beef, chicken, pork, and shrimp made to order. In 2003, Taco Cabana began building new restaurants with a large char-grill. They opened nine new restaurants that year. By 2005, the chain had 120 restaurants.

Fiesta Restaurant Group and Yadav Enterprises

In 2012, Carrols created a new public company called Fiesta Restaurant Group, Inc. This company took over Taco Cabana and its sister brand, Pollo Tropical. By October 2012, Taco Cabana had 160 restaurants. Felix Stehling, the founder, passed away later that year at age 87.

In January 2016, Fiesta had 162 company-owned and six franchised Taco Cabana restaurants. By July 2017, there were 176 Taco Cabana stores. On January 14, 2020, Fiesta Restaurant Group announced they would close 19 Taco Cabana locations in Texas. They said these stores were losing too much money.

In August 2021, Yadav Enterprises, Inc. bought Taco Cabana from Fiesta Restaurant Group. The deal was worth about $85 million. Fiesta said they wanted to focus on the Pollo Tropical brand.

Restaurant Updates

A Taco Cabana location in Dallas, Texas.

In 2012, Taco Cabana started updating its restaurants. The new design featured star-shaped lights hanging from the ceiling. It also had colorful papel picado decorations. Large photos of Mexican street life decorated the walls.

Food and Ordering

In 2002, Taco Cabana added flautas to its menu for a short time. They were so popular that they became a permanent item. In 2003, they introduced the "premium bowl," which led to salads and bowls on the menu.

In April 2004, Taco Cabana started selling the Dozen Breakfast Tacos Box. This was also very popular and became a regular item. Over the years, new items have been tested and added. These include steak street tacos, brisket tacos, sopapillas, and flan.

In 2015, Taco Cabana launched an online mobile ordering app. In January 2018, they began offering some breakfast foods all day. The chain also sells various refreshing beverages. In March 2018, they brought back Texas smokehouse brisket.

Taco Cabana continues to offer taco boxes with a dozen tacos. All breakfast tacos are available in the mornings. Some breakfast tacos are available all day. They also sell some of their hot sauces.

In March 2020, during the COVID-19 pandemic, all restaurants stopped indoor dining. They only offered take-away service. By June, some allowed outdoor dining. By early 2021, all Taco Cabana dining rooms and patios were open again.

Programs and Charity

Taco Cabana has its own app. Guests can use it to find locations and order food online for delivery or pick-up. Taco Cabana also has a loyalty rewards program for its customers.

The company is involved with several local military groups in Texas. They offer a daily 15% discount for military members. This discount is for in-restaurant or drive-thru orders.

Taco Cabana has supported many fundraisers and charities across Texas. These include the Warrior and Family Support Center (WFSC) and the Boys and Girls Clubs of Texas. They have also helped the National Kidney Foundation and Susan G Komen. Since 2010, Taco Cabana has hosted Taco Treat fundraisers for the WFSC.

Besides the military discount, Taco Cabana also offers a daily 15% discount for senior citizens and students. These discounts require a valid ID.

See also

• Two Pesos, Inc. v. Taco Cabana, Inc.
• Two Pesos
• List of Texas companies (T)
• List of Mexican restaurants